The non-dom status explained: how the tax exemption works

Residence vs. domicile

Cyprus distinguishes between tax residence and domicile. Anyone resident in Cyprus but without a Cypriot domicile can obtain the non-dom status, which exempts them from the special defence contribution on dividends, interest and rent.

What this means in practice

Combined with a Cyprus Limited the well-known model emerges: low corporate tax at company level and a largely levy-free distribution to the non-dom owner. The status applies for up to 17 years within 20 years of residence.

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